Trustee Troubles

Sometimes trustees of a trust could find themselves in a difficult position where practical necessity requires that they act in a way that may conflict with their trustee duties under the Trusts Act 2019. This could happen where, for example:

• a house must be sold but a weak property market means that the trustees are unlikely to get the best possible price for that house; or

• a trustee who is also a beneficiary wishes to be paid out their share of the Trust property, but it is unclear whether doing so could be unfair to other beneficiaries.

  
  

The difficulty for trustees is that their decisions could be challenged by beneficiaries and potentially they could be held personally liable if found that they breached their obligations as trustees. In these situations, trustees can apply to the Court for permission to act in a particular way. By doing so, they will avoid any personal liability.

If you need help navigating a difficult trust situation, or if you need other legal advice, feel free to contact us.